It would be amazing if we could pay for everything we want and need with cash, right? We could avoid credit disputes and poor decision making. Unfortunately, we can't always pay with cash. But, when you have poor credit this makes things far worse. When you're short on cash, and have poor credit you're placed into a burdening financial dilemma, because you have nothing you can lean on when something unpredictable comes up. This is bad. However, you don't need to let your poor credit control your life. You can overcome it and recover.
Mistakes are made by everyone--no one is perfect and very few have perfect credit. If you're recovering from a credit catastrophe, wait for the dust to settle before you panic. And if you're still dealing with outstanding delinquencies, set up a payment plan and stick to it. Consider ways you can begin growing your credit worthiness again once you begin credit recovery.
Overcoming a History of Poor Credit
Don't let poor credit hold you back when there are ways to overcome it. Of course, it's not the healthiest situation, but this can happen to anyone. Don't beat yourself up and don't feel like it is the end of the world. While it takes a great deal of time and determination to overcome a poor credit history--building a positive financial history can begin to help. There are a number of ways to push past these circumstances. If you have held a full-time job for a long while and have consistently paid utility bills on time--this looks good to creditors. Here we are going to give you some strategic advice and tips to put into play to get back on your feet again. Poor credit isn't the end of the world, but if you keep making the same decisions that led you into it, you'll never get out from under it.
Many Canadians with poor credit turn to a secured credit card as a means to begin turning things around, but it takes time. Just because it's your own money your putting on the card and spending doesn't mean you don't have to follow traditional credit card requirements. For instance, you don't want to spend more than 30% of your available balance and you do want to pay off the balance every month if possible. Over time this can begin to improve your credit and get you back on the right track. There are several other ways you can improve your credit profile!
Tips to Help You Recover from a Poor Credit History
Canadians are probably more than aware of the importance of credit counseling to raise their credit score. You have to be wary here though because there are always scam artists just waiting to take advantage of someone. But, many people with burdening debt try to clean this up on their own and make mistakes doing so. Only a credit counselor can tell you what to work on, what to wait on and what to ignore. Too many Canadians work hard to improve their credit. They shouldn't have to worry about doing it the wrong way, and they definitely shouldn't have to worry about scam artists either.
The best advice to be given here is to do the best you can. Show creditors you're trying to get on top of your debts and you're working as much as possible to pay off debt too! From this moment on, always:
set up a plan and stick to it
pay bills on time
don't overwhelm yourself
don't make arrangements you can't stick to
keep working to improving your credit worthiness despite possible slip ups
don't have a higher debt to income ratio